XML 40 R28.htm IDEA: XBRL DOCUMENT v3.5.0.2
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2016
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
Our financial assets and (liabilities) carried at fair value measured on a recurring basis as of September 30, 2016 and December 31, 2015, consisted of the following (in thousands):
 
 
 
 
Fair Value Measurements Using
 
 
Total Fair
 
Quoted prices in
 
Significant other
 
Significant
 
 
Value at
 
active markets
 
observable inputs
 
unobservable inputs
Description
 
September 30, 2016
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
 
 
 
 
 
 
 
 
Interest rate contracts (1)
 
$
(982
)
 
$
—

 
$
(982
)
 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurements Using
 
 
Total Fair
 
Quoted prices in
 
Significant other
 
Significant
 
 
Value at
 
active markets
 
observable inputs
 
unobservable inputs
Description
 
December 31, 2015
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
 
 
 
 
 
 
 
 
Interest rate contracts (1)
 
$
2

 
$
—

 
$
2

 
$
—

Foreign currency contracts (2)
 
$
(278
)
 
$
—

 
$
(278
)
 
$
—



(1)    The fair value of the interest rate contracts is determined using Level 2 fair value inputs and is recorded as other long-term obligations or other long-term assets in the Consolidated Balance Sheets.
(2)    The fair value of the foreign currency contracts is determined using Level 2 fair value inputs and is recorded as accrued expenses in the Consolidated Balance Sheets.
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
Changes in the fair value of our contingent consideration liability during the three and nine-month periods ended September 30, 2016 and 2015 consisted of the following (in thousands):

 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2016
 
2015
 
2016
 
2015
Beginning balance
 
898

 
1,949

 
$
1,024

 
$
1,886

Contingent consideration liability recorded as the result of acquisitions (see Note 5)
 
—

 
270

 
—

 
270

Fair value adjustments recorded to income during the period
 
(193
)
 
(58
)
 
(136
)
 
185

Contingent payments made
 
(16
)
 
(14
)
 
(199
)
 
(194
)
Ending balance
 
$
689

 
$
2,147

 
$
689

 
$
2,147
Fair Value Inputs, Liabilities, Quantitative Information
The recurring Level 3 measurement of our contingent consideration liability and contingent receivable includes the following significant unobservable inputs at September 30, 2016 and December 31, 2015 (amounts in thousands):
Contingent consideration liability (asset)
 
Fair value at September 30, 2016
 
Valuation technique
 
Unobservable inputs
 
Range
Revenue-based payments
 
$
689

 
Discounted cash flow
 
Discount rate
 
9.9% - 15%
 
 
 
 
 
Probability of milestone payment
 
100%
 
 
 
 
 
 
Projected year of payments
 
2016-2028
 
 
 
 
 
 
 
 
 
Contingent receivable
 
$
(477
)
 
Discounted cash flow
 
Discount rate
 
10%
 
 
 
 
 
Probability of milestone payment
 
51%
 
 
 
 
 
 
Projected year of payments
 
2016-2019
Contingent consideration liability
 
Fair value at December 31, 2015
 
Valuation technique
 
Unobservable inputs
 
Range
Revenue-based payments
 
$
874

 
Discounted cash flow
 
Discount rate
 
5% - 15%
 
 
 
 
 
Probability of milestone payment
 
100%
 
 
 
 
 
 
Projected year of payments
 
2016-2028
 
 
 
 
 
 
 
 
 
Other payments
 
$
150

 
Discounted cash flow
 
Discount rate
 
—%
 
 
 
 
 
Probability of milestone payment
 
100%
 
 
 
 
 
 
Projected year of payments
 
2016